SCENARIO 18-1
A real estate builder wishes to determine how house size (House)is influenced by family income
(Income), family size (Size), and education of the head of household (School).House size is
measured in hundreds of square feet, income is measured in thousands of dollars, and education is in
years.The builder randomly selected 50 families and ran the multiple regression.Microsoft Excel
output is provided below:
-Referring to Scenario 18-1, what fraction of the variability in house size is explained by income,
Size of family, and education?
A) 27.0%
B) 33.4%
C) 74.8%
D) 86.5%

Question

SCENARIO 18-1
A real estate builder wishes to determine how house size (House)is influenced by family income
(Income), family size (Size), and education of the head of household (School).House size is
measured in hundreds of square feet, income is measured in thousands of dollars, and education is in
years.The builder randomly selected 50 families and ran the multiple regression.Microsoft Excel
output is provided below: 
-Referring to Scenario 18-1, what fraction of the variability in house size is explained by income,
Size of family, and education?
A) 27.0% 
B) 33.4% 
C) 74.8% 
D) 86.5%

Quizplus · Accepted Answer

The fraction of variability explained by the model is typically represented by the R-squared value, which in this case is 74.8%.

SCENARIO 18-1 A Real Estate Builder Wishes to Determine How House Size